Almost 70 million adult savings accounts earn 3% or less in interest, which is lower than the CPI inflation rate of 3.1%, Spring has revealed.

The savings app’s analysis of CACI data found that 69.6 million accounts, which collectively hold £600bn, are losing value in real terms as their interest rates fails to keep pace with rising prices.

The analysis also highlighted that substantial sums are being held in low-paying accounts, even among savers with larger balances. Spring found £526.5bn is held in accounts with more than £10,000, and £183bn is held in accounts with more than £100,000, despite 3% and under in interest.

On average, savings accounts holding more than £10,000 but earning 3% or less interest pay 1.67%. Across all accounts with balances over £10,000, the average interest rate is only 2.95%.

The average account earning 3% or under has a balance of £8,631.

Head of money at Spring, Derek Sprawling, said the figures highlight a “growing problem” for savers.

He concluded: "Millions of accounts holding more than £10,000 are earning less than inflation, generating an average return of just 1.67%. When your money isn't keeping pace with rising prices, its spending power gradually falls, meaning savers could be losing out without realising it. And that's before considering the billions of pounds sitting in current accounts earning little or no interest at all.

"Finding a competitive rate is important, but savers shouldn't have to choose between earning more and accessing their money. The right account should do both, deliver a strong return while giving people the flexibility to use their savings when life throws up unexpected costs or opportunities."

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